O2I's Route Optimization Services Helped a Leading Dairy Supplier in the Middle East Streamline Their Product Delivery

The Client

A leader in supplying milk and dairy products in the Middle-eastern region, and one of the top brands in the production, sales, and distribution of high-quality food products approached Outsource2india. The company has sales close to $400 million yearly, with 500 sales routes, 35,000 customers, and 24 depots to be managed daily.

The Challenge

Managing 500 routes daily was a big task which led to the problem of streamlining delivery activities and optimizing daily routes. The company expected Outsource2india to provide -

Effective fleet management

Optimized route plan for each driver/vehicle

Limited resources for cost of operation - tighter budgets

Delivery plans incorporating constraints like - traveling only to a specific route, visiting the customer at a specific time, driver unavailability, etc.

Our Solution

The problem was resolved using scientific methods of data science and applied engineering. At Outsource2india, our route optimization experts leveraged numerous industry-best techniques to precisely address the concerns of the client. Our services included the following -

We grouped geography as regions based on proximity - using machine learning techniques for creating homogenous sub groups of outlets/delivery points

Using actual distance between outlets and between outlet and warehouse as input for optimization algorithm

Accommodating constraints based on time, fleet, or location - optimize sales, number of delivery points, and store delivery frequency (daily, weekly, bi-weekly, and monthly)

The Result

The project is a huge success and was completed within the stipulated deadline. Client witnessed improvements in the timely deliveries with optimized routes helped in resource optimization. Fewer trucks handled more deliveries with reduced wear and tear. Also, there is now a real-time visibility into delivery status for dispatch. On the final implementation a 27% saving in distance and a 16% reduction in number of routes was achieved. For this client and their size of daily operations, this equates to a considerable saving in operational costs.

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